United just obliterated Hawaiian Airlines' stock

Hawaiian Holdings, the parent company of Hawaiian Airlines, saw its stock plunge more than 10% Wednesday morning after an analyst downgrade and more competitor flights to the islands.

United Continental Holdings announced Tuesday it would add 11 new daily flights to the mainland and Honolulu, as well as smaller Hawaiian airports, like Kahului (Maui), Kona and Lihue.

The new competition led Stifel analyst Joseph DeNardi to downgrade the stock from “hold” to “sell,” while lowering his price target by $US20 to $US40.

Budget carrier Southwest also has its eyes on Hawaii, CEO Gary Kelly said last month at the airline’s annual meeting, but flights are unlikely to take off until after 2018. Even then, Stifel adds, any additional flight from the west coast would only add about 0.2% to total industry capacity to the islands.

United’s stock was relatively flat on the news.

NOW WATCH: THE BOTTOM LINE: A top Wall Street strategist says there’s nothing to worry about and we examine bitcoin’s surge

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.